Atcom Technologies Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - FOR STANDALONE STATEMENTS

1. Basis of Preparation of Financial Statements

(i) Compliance with Ind AS

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the
historical cost convention on the accrual basis except for certain financial instruments which are measured at fair
values,in accordance with the provisions of the Companies Act, 2013 (“the Act”) (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section
133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant
amendment rules issued thereafter.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

• certain financial assets and liabilities (including derivative instruments) and contingent consideration that are
measured at fair value;

Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

As the quarter and year-endfigures are taken from the source and rounded to the nearest digits, the figures reported
for the previous quarters might not always add up to the year-end figures reported in this statement.

2. Use of estimates

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting
policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the
date of the financial statements and reported amounts of revenues and expenses during the period. The application
of accounting policies that require critical accounting estimates involving complex and subjective judgments and
the use of assumptions in these financial statements have been disclosed in Notes. Accounting estimates could
change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates
are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which the changes are made and, if material, their
effects are disclosed in the notes to the financial statements.

3. Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are
net of discounts and taxes.

The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the Company and specific criteria have been met for each of the Company’s activities
as described below. The Company bases its estimates on historical results, taking into consideration the type of
customer, the type of transaction and the specifics of each arrangement.

4. Income taxes

Income tax expense comprises current and deferred income tax.

Income tax expense is recognized in the statement of profit and loss except to the extent that it relates to items
recognized directly in equity, in which case it is recognized in equity. Current income tax for current and prior
periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates
and tax laws that have been enacted or substantively enacted by the balance sheet date. Provision for income tax
includes the impact of provisions established for uncertain income tax positions.

Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax assets and
liabilities recognized for those temporary differences which originate during the tax holiday period are reversed
after the tax holiday period. For this purpose, reversal of timing differences is determined using first in first out
method.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable
that the related tax benefit will be realized. Deferred income tax assets and liabilities are measured using tax rates
and tax laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply to
tax able income in the years in which those temporary differences are expected to be recovered or settled.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

5. Impairment of non-financial assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested
annually for impairment, or more frequently if events or changes in circumstances indicate that they might be
impaired. Other assets are tested for impairment annually, or more frequently if events or changes in circumstances
indicate that they might be impaired whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is higher of an asset’s fair value less cost of disposal or
value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other assets or a group
of assets (cash-generating units). Non-financial assets, other than goodwill, that suffer an impairment are reviewed
for possible reversal of the impairment at the end of each reporting period.

6. Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash in hand and
deposits held at call with financial institutions which are subject to an insignificant risk of changes in value.

Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.

7. Trade Receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the
effective interest method, less provision for impairment.

8. Inventories

Inventories represent items of traded goods that are specific to the weighing scale business of the company.
Inventory is carried at the lower of cost or net realizable value. The net realizable value is determined with reference
to selling price of goods less the estimated cost necessary to make the sale.

9. Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or
equityinstrument of another entity.

i. Financial assets

All financial assets are recognized initially at fair value. Transaction costs that are directly attributable to the
acquisition of financial assets (other than financial assets at fair value through profit or loss) are added to the
fair value measured on initial recognition of financial asset. Purchase and sale of financial assets are accounted
for at trade date.

Cash and short-term deposits

Cash and short-term deposits in the balance sheet comprise cash in banks and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value.

Financial assets at Fair Value through Profit and Loss

Any financial asset, which does not meet the criteria for categorization at amortized cost or at fair value through
other comprehensive income, is classified at fair value through profit and loss. Financial assets included at the
fair value through profit and loss category are measured at fair value with all changes recognized in the
statement of profit and loss.

Equity investments

Equity investments in subsidiaries are measured at cost for new investment.

Derecognition of financial assets

A financial asset is primarily derecognized when the rights to receive cash flows from the asset have expired,
or the Company has transferred its rights to receive cash flows from the asset.

ii. Financial liabilities

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and
payables, netof directly attributable transaction costs.

The Company’s financial liabilities include trade payables, borrowings including bank overdrafts and other
payables.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires.

10. Property, plant and equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical
cost less accumulated depreciation less impairment losses. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of
the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is
derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting
period in which they are incurred.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant
and equipment recognized as at 1 April 2016 measured as per the previous GAAP and use that carrying value as
the deemed cost of the property, plant and equipment.

Depreciation methods, estimated useful lives and residual value

Depreciation on property, plant and equipment is provided on the straight-line method over their estimated useful
lives, as determined by the management. Depreciation is charged on a pro-rata basis for assets purchased / sold
during the year.

The management’s estimates of the useful lives of various assets for computing depreciation are as follows:

The useful lives of the assets continue to be those prescribed under Schedule 3 of the Companies Act, 2013.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year-end and adjusted prospectively, if appropriate.

11. Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial
year which are unpaid. The amounts are unsecured and are usually paid as per the agreed terms. Trade and other
payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.
They are recognized at their fair value.

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Mar 31, 2013

Basis of accounting

The financial statements have-been prepared under the-historical cost of convention on an accrual basis.

Fixed Assets

Fixed assets are recorded at the cart of acquisition or construction. They a restated at historical cost less accumulated depreciation, Expenditure During Construction period

Expend during const ration period Including pre operative expenses, all direct and indirect expenses and trial expanses are capitalized.

Deprecation

Depreciation on fixed assets is provided on the straight line lasts at the rates and in the manner specified in schedule XV of the Companies Act 155 G- Co-51 of lease hold land amortized there the period of lease.

Investments

Current investment are carried at lower of due Long-term we stamens and carried at cost. However, prevision for domination in the value is made to recognize a demine other than temporary in the carving amount of investments.

inventories

Items of Inventories are valued at cost or net realizable value, whichever is determined as follows.

a. Raw Materials - on FIFO (First Out )basis

b. Work-in-prognoses and finished goods on absorption costing method.

Doubtful Debts/Advances

Provision has heed made m the accounts for debts/ adv antes, which In The polonium of the managements are considered doubtful of rescuer. Retirement And Other Employee Benefits

1. Provident fund contributions are charged to the profit and loss account of the year when the contribution to the fund 5 due,

2.Gratuity -Liability is determined on the basis of actuary al valuation made at the year/period end.

Revenue Recognition

Revenue (Income) is recognized when no significant uncertainty as to date termination or reaction exits;

Borrowing Costs

Borrowing costs, which are attributable to the acquisition, construction or production of qualifying assets, are capitalized as part of cost of such assets. Where, a qualifying asset is one that necessarily takes a substantial period of time to get ready for Its intended use. All other borrowing cost is caged to profit and loss account.

Tax on Income

Tan expense to patsies current tax and deferred lax, aid the applicable e matted/substantially en« ted rates. Current income tax report under amount of come tax payable/severable in respect of the taxable into me/lost for the reporting period Deferred income tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subs equerry periods.

contingent Liabilities and provision

Contingent Liabilities. if any, are disclosed in the note s on act county Provision is made in the accounts in respell of those contingences which are likely to materials into liabilities after the year-end lilt the adaption of accounts by the Board of Directors and which have maternal effect on the position state din the balance Sheet and it''s probable that an outflow of resource; will be require to settle the obligation, in respect of which a reliable estimate cart be made.

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Mar 31, 2011

Basis of accounting

The financial statements have been prepared under the historical cost of convention on an accrual basis.

Fixed Assets

Fixed assets are recorded at the cost of acquisition or construction. They are stated at historical cost less accumulated depreciation.

Expenditure During Construction period

Expenditure during construction period including pre-operative expenses, all direct and indirect expenses and trial run expenses are capitalized.

Depreciation

Depreciation on fixed assets is provided on the straight-line basis at the rates and in the manner specified in schedule XIV of the Companies Act 1956. Cost of leasehold land is amortized over the period of lease.

Investments

Current investments are carried at lower of cost or fair value. Long-term investments are carried at cost. However, provision for diminution in the value is made to recognize a decline other than temporary in the carrying amount of investments.

Inventories

Items of inventories are valued at cost or net realizable value, whichever is lower. Cost is determined as follows.

a. Raw Materials – on FIFO (First In First Out) basis.

b. Work-in-progress and finished goods on absorption costing method.

Foreign Currency Transaction

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of transaction. At the year-end, foreign currency monetary items are reported using the closing rate. Exchange difference arising thereon and on realization/ payment of foreign exchange are recorded in the relevant year as income or expenses except gain or loss on transactions relating to acquisition of fixed assets/intangibles from outside India, which is adjusted to the carrying amounts of the fixed assets.

Doubtful Debts/Advances

Provision has been made in the accounts for debts/ advances, which in the opinion of the managements are considered doubtful of recovery.

Retirement And Other Employee Benefits

a. Provident fund contributions are charged to the profit and loss account of the year when the contribution to the fund is due.

b. Gratuity –Liability is determined on the basis of actuarial valuation made at the year/period end.

Government grants

Grants related to specific fixed assets are disclosed as a deduction from the value of the concerned assets. Grants related to revenue are credited to the Profit and loss account. Grants in the nature of promoter's contribution are treated as capital reserve.

Revenue Recognition

Revenue (Income) is recognized when no significant uncertainty as to determination or realization exits.

Borrowing Costs

Borrowing costs, which are attributable to the acquisition, construction or production of qualifying assets, are capitalized as part of cost of such assets. Where, a qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing cost is charged to profit and loss account.

Taxes on Income

Tax expense comprises current tax and deferred tax, at the applicable enacted/ substantially enacted rates. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act 1961. Deferred income tax represents the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Contingent Liabilities and Provisions

Contingent liabilities, if any, are disclosed in the notes on accounts. Provision is recognized in the accounts when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

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Mar 31, 2010

Basis of accounting

The accounts have been prepared under the historical cost convention, on accrual basis.

Fixed assets

Fixed assets are recorded at cost of acquisition or construction. They are stated at historical cost less accumulated depreciation.

Expenditure during construction period

Expenditure during construction period including preoperative expenses, all direct and indirect expenses and trial run expenses are capitalized.

Depreciation

Depreciation on fixed assets is provided on the straight-line basis at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. Cost of leasehold land is amortized over the period of lease.

Investments

Current investments are carried at lower of cost and fair value. Long-term investments are I carried at cost. Provision is made to recognize a decline, other than temporary, in the carrying amount of long-term investments.

Inventories

Items of inventory are valued at cost or net realizable value, whichever is lower. Cost is determined on the following basis:

a. Raw materials - on FIFO (first in first out) basis

b. Work-in-progress and finished goods - on absorption costing method

Foreign currency transactions

Transactions in foreign currency are recorded at the original rates of exchange in force at the time the transactions are effected. At the year-end, monetary items denominated in foreign currency are reported using the closing rates of exchange. Exchange differences arising thereon and on realization/ payment of foreign exchange are accounted in the : relevant year as income or expense except in the case of fixed assets acquired from outside India, in which case, these are adjusted in the carrying amounts of such assets.

Doubtful debts/ advances

Provision is made in the accounts for debts/ advances which in the opinion of the management are considered doubtful of recovery.

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Mar 31, 2009

Basis of accounting

The accounts have been prepared under the historical cost convention, on accrual basis.

Fixed assets

Fixed assets are recorded at cost of acquisition or construction. They are stated at historical cost les: accumulated depreciation.

Expenditure during construction period

Expenditure during construction period including preoperative expenses, all direct and indirect expense and trial run expenses are capitalized.

Depreciation

Depreciation on fixed assets is provided on the straight-line basis at the rates and in the manner specific in schedule XIV of the Companies Act, 1956. Cost of leasehold land is amortized over the period of lease.

Investments

Current investments are carried at lower of cost and fair value. Long-term investments are carried a cost. Provision is made to recognize a decline, other than temporary, in the carrying amount of long-tern investments.

Inventories

Items of inventory are valued at cost or net realizable value, whichever is lower. Cost is determined of the following basis:

a. Raw materials - on FIFO (first in first out) basis

b. Work-in-progress and finished goods - on absorption costing method

Foreign currency transactions

Transactions in foreign currency are recorded at the original rates of exchange in force at the time the transactions are effected. At the year-end, monetary items denominated in foreign currency are reporter using the closing rates of exchange. Exchange differences arising thereon and on realization/ payment of foreign exchange are accounted in the relevant year as income or expense except in the case of fixed assets acquired from outside India, in which case, these arc adjusted in the carrying amounts of such assets.

Doubtful debts/ advances

Provision is made in the accounts for debts/ advances which in the opinion of the management are considered doubtful of recovery.

Retirement benefits

a. Provident fund - Liability is determined on the basis of contribution as required under the statute/ rules.

b. Gratuity - Liability is determined on the basis of actuarial valuation made at the year end.

A Significant Accounting Policies.

Government grants

Grants related to specific fixed assets are disclosed as a deduction from the value of the concerned assets.

Grants related to revenue are credited to the Profit and loss account. Grants in the nature of promoters contribution are treated as capital reserve.

Revenue recognition

Revenue (income) is recognized when no significant uncertainty as to determination or realization exists.

Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

Taxes on income

Tax expense comprises both current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income-tax payable/ recoverable in respect of the taxable income/ loss for the reporting period. Deferred tax represents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

Contingent liabilities

These, if any, are disclosed in the notes on accounts. Provision is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year-end till the adoption of accounts by the Board of Directors and which have material effect on the position stated in the Balance sheet.

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Mar 31, 2000

A) Basis of Accounting :

The accounts have been prepared under the historical cost convention on an accrual basis as a going concern, with revenues recognised and expenses accounted on accrual basis and applicable mandatory standards and in accordance with the requirements of the Companies Act, 1956.

b) Inflation :

The assets and liabilities are recorded at historical cost to the Company.These costs are not adjusted to reflect the changing value of purchasing power of money.

c) Contingencies and Events occurring after the Balance Sheet Date :

i) Accounting for contingencies (gains and losses) arising out of contractual obligations, are only on the basis of mutual acceptances.

ii) Where material, events occurring after the date of the balance sheet are considered upto the date of adoption of the accounts.

d) Prior Period Expenses/Income :

All identifiable items of income and expenditure pertaining to prior period, irrespective of period of accrual which are accounted through respective revenue accounts are accounted as "Prior Period Adjustment".

e) Revenue Recognition :

i) Sales :-

Income from Product Sales is recognised upon completion of sale . Sales are inclusive of excise duty but accounted net of sales - tax, wherever applicable. Income includes value of inter-division transfers at market price. The value of such inter - division transfers during the year amounts to Rs. 171.78 lacs is included in the figures of material purchase & sales.

ii) Dividends and Interest :

Dividend income from investments is recognised when the right to receive payment is established. Interest income is accounted on its accrual on a time proportion basis taking into account the amount outstanding and the rate applicable.

f) Fixed Assets and Depreciation :

i) Fixed Assets :

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalised and include financing costs relating to the borrowed funds attributable to construction or acquisition of fixed assets upto (he date the assets is put to use.

ii) Depreciation :

Depreciation is charged on the fixed assets ( except in case of Land ) on Straight Line Method and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

g) Investments :

Readily realisable investments intended to be held for less than one year are classified as current investment and are carried at lower of cost or market value. All other investments are classified as long term investments and are carried at cost.

h) Foreign Currency Transactions :

i) All transactions denominated in foreign currencies are recorded at the exchange rate prevailling at the time of such transaction;

ii) Any income or expenses on account of exchange difference either in settlement or on translation is recognised as revenue gain/loss except in case of acquisition of capital asset, it is adjusted to carrying cost of such asset.

i) Inventories :

i) Raw Materials are accounted at cost;

ii) Work-in-Process is accounted at Material cost;

iii) Finished Goods are accounted at lower of Cost or Net Realisable value.

iv) Stores and Consumables are charged to revenue at the time of procurement.

j) Excise Duty :

Excise Duty payable on finished goods is accounted on the clearance of goods from the bonded warehouse. The excise duty paid on closing inventory of finished goods has been included in the valuation of finished goods. The excise duty is not included in the value of raw materials inventory as the MOD VAT benefit is credited to the purchase account on accrual basis and goes to reduce the cost of the raw materials.

k) Taxation :

Provision for Taxation, wherever applicable, is made in accordance with the Income-tax Act, and Rules prevailing at the time of relevant assessment year and taking into consideration the exemptions and benefits available under the said Act and Rules.

l) Employees Retirement Benefits :

The companies contribution to the Provident Fund are charged to the Profit and Loss Account for the year. Provision for other retirement benefits viz. Gratuity has been made on the basis of actuarial valuation by an independant actuary.

m) Research and Development Expenditure :

Equipment purchased by the company for the Research and Development purposes are capitalised in the year of installation and are included in the fixed assets. Expenditure relating to the development of specific products are accumulated and capitalised on the establishment of commercial viability.

n) The company has received grant from Govt, of india for development of new products. The amount of grant has been reduced on such cost of development and the net amount is disclosed in capital work in progress.